Correlation Between Amg Southernsun and Amg Frontier
Can any of the company-specific risk be diversified away by investing in both Amg Southernsun and Amg Frontier at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Amg Southernsun and Amg Frontier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amg Southernsun Equity and Amg Frontier Small, you can compare the effects of market volatilities on Amg Southernsun and Amg Frontier and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Amg Southernsun with a short position of Amg Frontier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Southernsun and Amg Frontier.
Diversification Opportunities for Amg Southernsun and Amg Frontier
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Amg and Amg is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Amg Southernsun Equity and Amg Frontier Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Frontier Small and Amg Southernsun is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Amg Southernsun Equity are associated (or correlated) with Amg Frontier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Frontier Small has no effect on the direction of Amg Southernsun i.e., Amg Southernsun and Amg Frontier go up and down completely randomly.
Pair Corralation between Amg Southernsun and Amg Frontier
Assuming the 90 days horizon Amg Southernsun Equity is expected to under-perform the Amg Frontier. But the mutual fund apears to be less risky and, when comparing its historical volatility, Amg Southernsun Equity is 1.02 times less risky than Amg Frontier. The mutual fund trades about 0.0 of its potential returns per unit of risk. The Amg Frontier Small is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 746.00 in Amg Frontier Small on November 2, 2024 and sell it today you would earn a total of 188.00 from holding Amg Frontier Small or generate 25.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amg Southernsun Equity vs. Amg Frontier Small
Performance |
| Timeline |
| Amg Southernsun Equity |
| Amg Frontier Small |
Amg Southernsun and Amg Frontier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Southernsun and Amg Frontier
The main advantage of trading using opposite Amg Southernsun and Amg Frontier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Southernsun position performs unexpectedly, Amg Frontier can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Amg Frontier will offset losses from the drop in Amg Frontier's long position.| Amg Southernsun vs. Hennessy Bp Energy | Amg Southernsun vs. Blackrock All Cap Energy | Amg Southernsun vs. Jennison Natural Resources | Amg Southernsun vs. Pimco Energy Tactical |
| Amg Frontier vs. Prudential Financial Services | Amg Frontier vs. 1919 Financial Services | Amg Frontier vs. Blackstone Secured Lending | Amg Frontier vs. John Hancock Money |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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